Questions & Replies: Question & Replies No 1451 to 1475

• Increase of 7% to R4, 119,500.00 with effect from 1 October 2007 (similar to the percentage increase awarded to all F-band employees during the October 2007 annual increase period)

• Adjustment of 15.31% to R4, 750,000.00 (median of market) with effect from 1 April 2008 (after 12 months in office).

• Increase of 8.84% to R5, 170,000.00 with effect from 1 October 2008 (annual increase period).

(ii) Eskom does not distinguish between salary and benefits for managers, threfore, benefits such as Pension Fund and Medical Aid are included in the above Total Guaranteed Package amounts.

(iii) There are no fixed bonuses. Bonuses are based on an individual's performance over 12 months. Based on this principle, the following bonuses were awarded since 2007:

31 March 2007: Short Term Incentive bonus of R1, 103, 000.

31 March 2008: The CEO antecedently divested himself of any right to receive a Short Term Incentive reward for that year.

31 March 2008: Long Term Incentive bonus of R 681, 446.

31 March 2009: Board deferred the allocation of all bonuses for this financial year.

(3) A performance agreement is concluded on an annual basis and includes the

following criteria:

• Ensure business sustainability of Eskom.
• Ensure reliable supply to all South Africans.
• Support the developmental objectives of South Africa.
• Ensure that the future power needs for South Africa are adequately provided for.

NATIONAL ASSEMBLY

TYPE: WRITTEN QUESTION

MINISTRY: SPORT AND RECREATION SA

QUESTION: NO 1471

(Internal Question Paper No 18 – 2009)

Mr. T D Lee (DA) to ask the Minister of Sport and Recreation:

On what grounds was the decision taken to use a certain person (name furnished) as the doctor to perform sex tests on a certain person (name furnished)?

NW1832E

REPLY:

All officials who may be able to answer the question have been suspended by SASCOC.

WRITTEN QUESTION 1470

TRANSFERRED IN TERMS OF RULE 117

Date of publication on internal question paper: September 2009

Internal question paper no:

Ms SP Kopane (DA) to ask the Minister of Social Development:

(1) What amount in funding has been allocated to each (a) public and (b) private rehabilitation centre in each of the past three years up to the latest specified date for which information is available;

(2) whether these centres are registered with his department; if not, (a) which centres in each province are not registered with his department and (b) what is the reason for this in each case; if so, which centres are registered (i) permanently and (ii) temporarily;

(3) what is the (a) actual and (b) optimal number of staff for (i) doctors, (ii) nurses, (iii) social workers, (iv) forensic social workers and (v) other specified professions at each of these centres? NW1831E

REPLY:

(1) Amount of funding allocated to each public and private treatment centre in the past three years is as follows:

Table 1: Public treatment centres

NB: Kensington rehabilitation centre was established in April 2009, thus there was no funding for 2007/2008 and 2008/2009 financial years.

Table 2: Private treatment centres

(2) Permanently registered, temporarily registered and unregistered treatment centres with reasons for non registration.

Table 3: Registered and unregistered treatment centres

(3)Actual and optimal number of professional staff in treatment centres

Table 3: Actual number of professional staff in public treatment centres

Table 4: Optimal number of professional staff in public treatment centres

Table 5: Actual number of professional staff in private treatment centres

Table 6: Optimal number of professional staff in private treatment centres

QUESTION NO. 1469

INTERNAL QUESTION PAPER NO 18

DATE OF PUBLICATION: 25 September 2009

Mrs C N Z Zikalala (IFP) to ask the Minister of Tourism:

(1) Whether the number of tourists visiting the country has decreased in the 2008-09 financial year; if so, what are the relevant details;

(2) whether any additional initiatives and programmes will be implemented to boost the tourist industry; if not, why not; if so, what are the relevant details?

NW1830E

MRS C N Z ZIKALALA (IFP)

SECRETARY TO PARLIAMENT

HANSARD

PAPERS OFFICE

PRESS

1469. THE MINISTER OF TOURISM ANSWERS:

(1) No, Foreign arrivals increased by 5.5% between 2007 and 2008. In total, there were 9,591,828 arrivals in 2008 compared to 9,090,881 arrivals in 2007.

Foreign arrivals for the first 6 months of 2009 increased by 1% over the same period in 2008. In total, there were 4,720,343 arrivals in the first six months of 2009 compared to 4,671,749 arrivals for the same period in 2008. The travel statistics are compounded per calendar year and not financial year.

(2) Yes,

All South Africa Tourism marketing plans have been adjusted to include recovery plans. These include more joint marketing agreements with trade partners, increasing advertising slots on global broadcast platforms; a major social marketing campaign on travel sites; hosting key media and trade in South Africa and an aggressive public relation reputation management initiative.

THE NATIONAL ASSEMBLY

QUESTION FOR WRITTEN REPLY

Question 1468

Ms S P Lebenya-Ntanzi (IFP) to ask the Minister of Trade and Industry:

(1) Whether there has been an increase In the number of lenders who defaulted on their loan repayments to Khula; if so, (a) what action has been taken against them and (b) what are the further relevant details;

(2) Whether Khula has special measures in place to assist those who are struggling to repay their loans; if not, why not, if so, what measures;

(3). Whether Khula will implement any additional initiatives to boost economic activity; if not, why not; if so, what are the relevant detaIls? NW1829E

Response:

(1) Yes there has been an increase in the level of bad debt provisions.

(a) The loans of the defaulting clients have been restructured and legal action has been taken where appropriate.

(b) The provision against the business loans of Khula to Retail Financial Intermediaries (RFI's) has increased from 9.9% in 2007/8 to 16.2% in 2008/9. During the 2008/9 financial year 2 additional RFl's experienced difficulties repaying their loans to Khula. This is largely due to the difficult trading conditions they experienced as a result of the recession.

(2) Please note that Khula is a wholesale finance institution that operates in the public and private sectors, through a network of channels which supplies much needed funding to small businesses across the country. Khula's primary aim is to bridge the SME "funding gap, not addressed by commercial financial institutions The channels used by Khula in this regard include RFl's which provide funding to small enterprises. Small businesses are therefore not direct clients of Khula.

In order to assist struggling clients, Khula has the following special measures in place:

• The appointment of specialist mentors to assist relevant RFls turn their businesses around.
• Khula actively monitors its business loan book through Its current risk processes and procedures and is therefore able to pro-actively identify non-performing RFl's in order to take additional action or assist where possible.

(3) In order to boost economic activity and enhance access to finance for SMEs, Khula is at an advanced stage of finalising Its business plan to enable the organisation to lend directly. Khula is currently operating as a wholesaler which limits its impact as it relies on third parties to deliver its products.

FOR WRITTEN REPLY

QUESTION NO. 1465

DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: 25 SEPTEMBER 2009

(INTERNAL QUESTION PAPER NO. 18)

Mr M H Hoosen (ID) to ask the Minister of Health:

Whether there is a backlog of new registrations at the Medicines Control Council; if so, what is (a) the backlog and (b) the cause of the delay?

REPLY:

The questions about MCC were asked by Mr Mike Waters (Question 119) and Ms E More (Question 146) both of the DA in August 2009, to which I responded.

I believe that the extensive answers provided are more than adequate. I am accordingly attaching them for your ease of reference.

NATIONAL ASSEMBLY

QUESTION 1464

WRITTEN REPLY 25 SEPTEMBER 2009

1464. The Leader of the Opposition (DA) to ask the Minister of Public

Works

(1) Whether, with reference to his reply to oral question 84 on 16 September 2009, the investigation into the company by the special investigating unit of the Department of Social Development (details furnished) was taken into consideration when the tender was awarded; if not, why not; if so, why was the tender awarded to this company;

(2) Whether his department will award any tenders to this company in future; if so, why? NW1823E

REPLY

(1) No, because such information was never transmitted to my department, through any state machinery, by Department of Social Development, whatsoever.

However, it is not in the nature of public sector procurement regime to disqualify any Bidder on the basis of pending investigation by any organ of state. Disqualifying bidders happens if the company in question, including its Directors, (i) was blacklisted due to non-performance and / or found guilty and convicted by the court of law and placed in the National Treasury Register of Tender Defaulters, (ii) failed to provide written proof from the South African Revenue Services that it either has no outstanding tax obligation or has made suitable arrangements to meet outstanding tax obligation, (iii) has committed a corrupt or fraudulent act in competing for the said contract, the Department could have either rejected or not considered their proposal / bid for the award, (iv) didn't satisfy all the requirements, meaning that it was administratively non-responsive in terms of the pre-determined criteria, and (v) it was not the highest scoring bidder.

It must also be noted that disqualifying any company on the grounds of any other reasons except for the ones mentioned supra does not augur well with the procurement ethical principles as enshrined in the Constitution of the Republic of South Africa [section 217 (1) & (2)].

(2), Awarding of tenders to any company when tendering / bidding for a specific project is based on the following requirements:

(i) Meeting and satisfying the pre-determined criteria

(ii) Scoring of the highest points

(iii) Tax matters still in order or Valid Tax Clearance Certificate

(iv) Company not having committed a corrupt or fraudulent act in competing for the contract that will be considered at that point in time.

(v) Not being blacklisted due to non-performance and / or found guilty and convicted by the court of law and placed in the National Treasury Register of Blacklisted Companies and/or Tender Defaulters.

On the contrary, it is also my contention that the only grounds for not awarding a contract to a bidder who satisfies the entire requirements are "blacklisting", lack of capability or capacity, legal barriers or conflicts of interest.

QUESTION NO: 1463

DATE OF PUBLICATION: 25 September 2009

QUESTION PAPER NO: 18

DATE OF REPLY: 7 October 2009

Mr N J van den Berg (DA) to ask the Minister of Communications:

(1) (a) With reference to the new Rica database in terms of the Regulation of Interception of Communications and Provision of Communication-related Information Amendment Act, Act 48 of 2008, (i) who deals with and (ii) manages it and (b) who has the right of access to the personal information that has to be provided in accordance with this Act before a new sim card can be activated;

(2) what are the projected costs related to the administration brought about by the Act? NW1822E

REPLY:

(1) (a)(i) & (ii): In terms of the In terms of the Regulation of Interception of Communications and Provision of Communication-related Information Amendment Act, the Electronic Service Providers or their appointed agents will capture the client information. The process of managing client information is solely a responsibility of the Electronic Service Providers concerned.

(b) The information recorded and stored as well as the facility in or on which the information is recorded and stored, must be secure and only accessible to persons specifically designated by that Electronic Service Providers. Furthermore, the RICA also provides for the Department of Justice and Constitutional Development to develop security standards regarding how to secure the database.

(2) In terms of the Regulation of Interception of Communications and Provision of Communication-related Information Amendment Act, specifically Section 40(2), read with 40(4), the Electronic Service Providers have to implement, at their own cost, a process to record and store client information. It is therefore not possible to provide the projected costs related to the administration brought about by the Act.

THE NATIONAL ASSEMBLY

QUESTION FOR WRITTEN REPLY

Question 1462

Mr S J F Marais (DA) to ask the Minister of Trade and Industry:

(1) Whether he is currently considering any incentives to South African (a) production companies, (b) small businesses and (c) foreign currency earning companies in support of their initiatives to retain jobs; if not, why not; if so, what are the relevant details;

(2) Whether any other form of support is available to these companies; if not, why not if so, what are the relevant details? NW1821E

Response:

(1) the dti has a number of incentive schemes which are available to production companies, small businesses and foreign currency earning companies. The department has sought to assist companies in distress within existing incentives, and is expediting payments to companies that are reporting financial difficulties. Expedited payment processes are also being considered for new planned incentives so that companies are able to meet the challenges posed by the recession.

(2) The department currently provides financial support to the companies referred to in question (1) through the following incentives:

(a) Incentives available to production companies and small businesses:

The Enterprise Investment Programme (EIP), which was launched in July 2008 as a replacement scheme for the Small Medium Enterprise Development Programme (SMEDP). It has two components/ namely, the Tourism Support Programme (TSP) and the Manufacturing Investment Programme (MIP). The TSP aims to support the development of tourism enterprises, stimulate job creation and encourage the geographic spread of tourism investment. The MIP is designed to stimulate investment in the manufacturing sector. The scheme is available to local and foreign-owned enterprises and offers an investment grant of up to 30% of the value of qualifying investment costs which is capped at a maximum of R200 million, the dti has established a procedure for prioritizing companies in financial distress as part of its claims approval process.

The Black Business Supplier Development Programme (BBSDP) which was launched in 2002. The incentive programme offers a 90: 1 0 cost sharing grant, whereby the dti contributes 90% of the cost of a project and the approved applicant 10%. The objective of the programme has been to enhance the competitiveness of local black-owned Small and Medium Enterprises (SME's). Applications for BBSDP in its current form were accepted until 31 August 2009, after which the revised guidelines will be effective from 01 April 2010.

(b) Incentives available to foreign currency earning businesses

The Automotive Production and Development Programme (APDP) which replaced the Motor Industry Development Programme (MIDP) in September 2008. Under the APDP, the Automotive Investment Scheme (AIS) replaces and expands the Productive Assets Allowance scheme (PAA) which elapses in December 2009. The scheme provides a taxable cash grant of 20% of the value of qualifying investment in productive assets. To qualify projects have to comply with at least two (2) of the following Economic Benefit Criteria:

• Investment in new models and / or model replacements

• Competitiveness Improvements (including the introduction of new technology)

• Local sourcing of tooling

• Value addition

• Employment

To support companies to retain jobs during the economic crisis period, the department is considering ways to expedite the payment of claims under the AIS.

the dti has developed a Clothing and Textiles Competitiveness Programme (CTCP) which is being administered by the Industrial Development Corporation (IDC) and consists of the following elements:

• A capital upgrading programme available to clothing. textiles and footwear manufacturers via the Enterprise Investment Programme administered by the dti together with preferential loans via the IDC at prime less 5%
  
  
• A firm and cluster level Clothing Textiles Competitiveness Improvement programme (CTCIP) which is being provided on a cost-sharing basis of 75% for' cluster interventions and 65% for individual company interventions.

In addition, research has begun on the possible introduction of a Production Incentive to supplement the CTCP over a limited duration of time. The objective of such an incentive would be to assist companies to get out of survival mode and create a greater appetite to take up the competitiveness improvement programmes offered through the CTCP, the dti is in the process of consulting with industry stakeholders and National Treasury on this instrument.

QUESTION NO.: 1461

DATE OF PUBLICATION: 25 SEPTEMBER 2009

Dr P J Rabie (DA) to ask the Minister of Economic Development:

(1) Whether he envisages that the amount made available for rescue packages to overcome the economic recession will be depleted within two years; if not, why not; if so, what are the relevant details;

(2) whether additional funding will be made available; if not, why not; if so,

(3) whether any plans have been put in place to address the matter; if not, why not; if so, what plans? NW1819E

REPLY

It is envisage that funds will be fully utilised within the two year period. Initial indications from the IDC are that the IDC funding will be fully utilized. The IDC is monitoring the take-up on an ongoing basis. The Board of the IDC will then need to consider whether additional resources will be available. The take-up on the training lay-off will be monitored and subject to the take-up rate, the need for additional funding will be addressed. A committee drawn from the social partners and government will evaluate this on an on-going basis.

QUESTION NUMBER 1459

DATE OF PUBLICATION: 25 SEPTEMBER 2009

Mr M Swart (DA) to ask the Minister of Finance:

Whether National Treasury provides training to financial managers at local government level to improve the overall financial controls and reporting of municipalities; if not, why not; if so, what does the training programme entail?

REPLY

National Treasury is providing training support to all financial officials responsible for municipal finances. With regard to the formal aspects of training and support to municipal finance officials, we have issued regulations that provide for minimum competencies that certain key officials must possess by 2013, through the Municipal Minimum Competency Regulations, (Government Gazette 29967, 15 June 2007). Awareness-raising workshops with municipal officials have been held across the country on the implementation of these regulations.

The positions identified are those of the Accounting Officers, Municipal Managers, Chief Financial Officers, Senior Managers, Heads of Supply Chain Management and other officials responsible for financial management in a municipality and its entities as provided for in the MFMA, Act 56 of 2003.

To ensure that these formal requirements are achieved, we have:

• Compiled and distributed all relevant training material and assessment instruments supporting the required training;

• Jointly with the LGSETA made available the services of 41 training providers across the country for easy access by municipal officials, to support middle and senior management training, targeting NQF levels 5 and 6;

• We are also being supported by SAICA with training of junior and middle management level officials, targeting NQF levels 3 and 4, focusing on developing practical accounting skills;

• Discussions have been held with PALAMA and the DBSA Vulindlela Academy to roll out other formal training programmes for municipal officials in financial management.

On the informal aspects of training the National Treasury has rolled out a number of training programmes for municipal officials across the country, including the following:

• General Financial Management training including all aspects of the MFMA and its Regulations since 2004 in which 1400 municipal officials have participated so far;

• Supply Chain Management undertaken by the SAMDI (PALAMA) since 2006 and attended by more than 1100 municipal officials to date;

• Asset Management, Disposal and Transfers Training conducted by Treasury officials since 2008 which has been attended by 800 officials so far;

• Training in Medium Term Budgeting and in-year reporting for municipalities conducted by Treasury officials since 2008 and attended by more than 350 municipal officials;

• Generally Recognised Accounting Practice (GRAP) training since 2008 provided to more than 250 officials, with further sessions planned for November 2009.

A programme to assist in skills development and implementation of the reforms has been in progress since 2005. Over 570 graduate interns from various disciplines, such as Accounting, Economics, Public Finance and Auditing, have been placed in municipalities.

The Internship programme is supported by the training of mentors and interns.

To enhance accessibility and to further supplement municipal resources, all municipalities are allocated funds from the Financial Management Grant.

THE NATIONAL ASSEMBLY

QUESTION FOR WRITTEN REPLY

Question 1458

Mr S J F Marais (DA) to ask the Minister of Trade and Industry:

(a) How many applications for rescue finance have been submitted to the Industrial Development Corporation (I) in the 2008-09 financial year and (Ii) during the period 1 April 2009 up to the latest specified date for which information is available and (b) how many were (i) processed and (ii) approved?

Response:

(a) (i) The Industrial Development Corporation (IDC) did not in the 2008/9 financial year have a facility for distressed companies in place. However, during this period it approved 14 applications from distressed firms, to the value of R484.5 million.

(ii) During the period April to August 2009, IDC received 43 applications for its Distressed Funding Facility.

(b) (i) Of the 43 applications received during this period, 19 applications have been processed to allow for a decision to be made on whether to provide funding or not In addition a further 16 existing IDC clients' facilities have been restructured during this period. The financing applications where companies are experiencing cyclical difficulties due to the deteriorating economy are prioritised. In all instances,. an initial desktop assessment is performed to identify fit with IDC's mandate. assess pragmatism of future projections and the likelihood of future viability with the assistance of IDC's funding intervention. Once the IDC team is satisfied with the initial assessment, an onsite due diligence is conducted. At this stage, there is intensive engagement with the client, its customers, suppliers; other funders, and Industry bodies of relevance, auditors, creditors, bankers and shareholders.

This is required in order for IDC to formulate a workable solution that fits the client's needs and to evaluate whether the turnaround plan will contribute to the sustainable recovery of the business.

{ii} Of the 19 applications processed, 11 were approved and 8 rejected.

The reasons for rejection included:

NATIONAL ASSEMBLY

QUESTION 1457

WRITTEN REPLY

1457. Mr S J Masango (DA) to ask the Minister of Public Works

(1) whether he has been informed of the deregistering of a certain company (name furnished) by the Construction Industry Development Board (CIDB),

(2) Whether a company that is deregistered can still have contracts with government departments; if not, why not; if so, what are the relevant details;

(3) Whether such a company can re-register with the CIDB; if not, why not; if so, what are the relevant details?

REPLY

1.The CIDB is not required to report to me the removal of names from the Register on an individual basis.

In this specific case, Kaulani Civils (Pty) Ltd was registered and active on grading designation 8CE (PE), the grading designation was valid until 22 December 2008. The CIDB allowed a grace period before the grading was removed on 21 February 2009.

It should be noted that the CIDB administers the national Register of Contractors currently consisting of approximately 100,000 registrations. These are dealt with in terms of the requirements of the CIDB Act, Act 38 of 2000 and the Construction Industry Development Regulations 2004, as amended and promulgated in terms of the Act. The registration and deregistration (not due to fraud and corruption) of contractors is a daily activity and is not static.

2. Only contractors that are registered with the CIDB may be awarded construction works contracts by the public sector. If a contractor's name and particulars are removed from the CIDB register during the currency of a public sector contract, that contractor may be permitted to complete the construction works contract. It must be noted that registration is valid for a three year period as per the CIDB Act and expires after that period. Contractors are required to submit their renewal applications three months before expiry of the existing registration in order to avoid registration expiry.

3. Any company whose registration has expired may re-register with the CIDB at any point in time.

DATE OF PUBLICATION: 25 September 2009

Mr M J Ellis (DA) to ask the Minister of Water and Environmental Affairs:

Whether South Africa has (a) signed and (b) acceded to the Revised African Convention on the Conservation of Nature and Natural Resources; if not, why not; if so, what are the relevant details?

NW1809E

HANSARD

PAPERS OFFICE

1451. THE MINISTER OF WATER AND ENVIRONMENTAL AFFAIRS ANSWERS:

South Africa has not signed and/or acceded to the Convention. South Africa is still considering the financial and institutional implications of acceding to the Convention.

QUESTION 1466

DATE OF PUBLICATION OF INTERNAL QUESTION PAPER: 25/09/09

(INTERNAL QUESTION PAPER 12-2009)

Mr D A Kganare(Cope) to ask the Minister of Basic Education:

(1) (a) What amount did her department budget for the implementation of the Occupation Specific Dispensation (OSD) and (b) what will it cost her department to implement the recently-signed OSD agreement;

(2) what amount (a) did her department budget for the laptop-for-every-educator project and (b) will be spent on this project in the 2009-10 financial year;

(3) whether any other programmes or projects were cancelled or postponed owing to the implementation of the OSD; if so, (a) which programmes or projects, (b) what was the estimated cost of each of these programmes or projects and (c) what impact will this postponement or cancellation have on delivery of quality education? NW1825E

REPLY:

(1) (a) My department does not budget for personnel costs in provinces. The projected cost for the Collective Agreement 1 of 2008, which catered for the Establishment of a Framework for the OSD for educators in public education amounted to R7 billion, which was made available to provinces through the equitable share.

(b) The projected cost for Collective Agreement 4 of 2009 which, caters for the finalisation of matters linked to the OSD in education amounts to R4, 135 billion.

(2) (a) R550 million has been projected for the lap top initiative for 2009/2010.

(b) Provincial Education Departments (PEDs) who have the resources available in this financial year may cover all educators who are eligible. Those PEDs who did not budget for this item because conclusion of the determination happened late in the financial year may phase in the initiative over two years starting 1 July 2009. My department is in a process of assessing which provinces will implement in the 2009/10 financial year to what amount.

(3) I am not aware of any programmes or projects that have been cancelled or postponed due to the implementation of OSD. The cost of the latest OSD will be funded from additional funds to be allocated to Provinces.

• Lack of a feasible turnaround strategy
• The applications were outside the legislative mandate of the IDC
• Insufficient information
• Contravention of minimum wage legislation
• Funding was no longer required.